How Microsoft caught up with Google on AI, and the exec who won OpenAI

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The inside story of how Microsoft caught up with Google on AI, and the unlikely executive who made it happen

on the gains that could be made by combining two existing ideas in the AI field: transformers and unsupervised pre-training. The result was a generative pre-trained transformer, or GPT. The third generation of this, GPT-3, now powers ChatGPT, the OpenAI chatbot that has taken the world by storm since its launch in late November. Microsoft's new Bing search engine uses a newer version of GPT-3 to answer complex questions.

The primary objectives of the partnership at the time were to bolster Microsoft's search capabilities, and offer language translation inside Microsoft Office products including Word, according to the person with direct knowledge of the deal. The relationship has since"outperformed Microsoft's wildest expectations," this person said.

Massive consumer engagement like this can often power improvements in a tech product, which in turn, attracts more users, more learning, and even more gains. Google mastered this positive feedback loop with its Search engine, which learns every time someone asks a question and clicks on a result. "Google had it all and was the clear no. 1 in the field, now they have to fight to keep their market share," a venture capitalist, who works with AI startups, told Insider."All of a sudden all of my friends who wouldn't even use their PC are suddenly on the waitlist to use Bing."

 

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